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Streamlining corporate transaction processes

Jared Heng | Sept. 19, 2008
HSBC is set to streamline transaction processes for corporate banking clients with the help of a major ERP vendor.

Mayank Mishra, head client access solutions, global transaction banking, HSBC

SINGAPORE, 19 SEPTEMBER 2008 -- As a global banking organisation, HSBC faced several challenges in its bid to improve connectivity with major clients. Accounts payable-accounts receivable reconciliation is the biggest pain for our corporate customers, said Mayank Mishra, head client access solutions, global transaction banking, HSBC.

According to HSBC, each type of banking service offered typically requires one service gateway, which is often a standalone application. Integration of HSBC and corporate client transaction processes was anything but seamless, as files were manually exported, encrypted and uploaded in proprietary formats.

The complex infrastructure put a strain on HSBCs support and maintenance resources, and was subject to security and operational risks.

Creating the solution

In response, HSBC is creating a bank-client integration solution using SAPs NetWeaver technology platform.

SAP NetWeaver would simplify HSBCs delivery of banking services by communicating transactions using the ISO 20022 XML format, HSBC said. The solution would also provide a standard interface between the corporate clients enterprise resource planning system and HSBCs back office, improving corporate connectivity.

Additionally, unification of multiple service gateways between the corporate client and the bank is expected to result in faster on-boarding and better control over liquidity for the corporate client, HSBC said.

With automated transaction tracking providing a traceable audit trail, we will also be able to better support compliance initiatives, Mishra said. Following successful pilot testing in early-2008, we now seek to make the solution commercially available to corporate clients regardless of geography by the end of this year.

Once deployed, the new solution will enable corporate clients to link into HSBCs worldwide banking network through a single entry point, according to HSBC. This is expected to simplify communications for the banks corporate services like account payables, account receivables and reconciliations. Corporate clients will also gain easier access to their banking information. 

Deployment support

Murray SargantsHSBCs client integration teams will be present in every country where we operate, Mishra said. These teams will help deploy the solution on the customers premises and go through the testing process.

Mishra said that deployment time would vary depending on the testing requirements of customers. Corporate clients that operate over several countries will tend to have more stringent and longer testing requirements.

This marks the start of a relationship with HSBC that will build quickly on the success of the project, said Murray Sargant (picture), senior vice president for banking, SAP Asia Pacific Japan. Such a solution may also be developed for the telecommunications and insurance sectors.


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